Union Pacific Corp and Norfolk Southern Corp Reportedly in Merger Talks
Union Pacific Corp is reportedly in advanced discussions to merge with Norfolk Southern Corp, with the proposed deal valuing the latter at approximately $320 per share.
The combined entity would create a massive transcontinental rail operator, with a combined market value of around $200 billion. The proposed deal would consist of two-thirds stock and one-third cash, representing a premium of about 23% over Norfolk Southern’s share price prior to the initial reports.
Key details of the proposed merger include:
- Valuation: $320 per share for Norfolk Southern Corp
- Deal structure: Two-thirds stock and one-third cash
- Premium: Approximately 23% over Norfolk Southern’s share price prior to the initial reports
- Combined market value: Around $200 billion
If the proposed merger is successful, it would be the largest-ever tie-up in the rail industry.